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City of Santa Ana Recycled Water Master 1011 Cost and Funding Evaluation for Recycled Water Master Plan The TRHA Team will help the City develop a funding plan and pricing structure for recycled water that helps meet the City's revenue requirements and financing needs. Typically, most utilities charge for recycled water at rates ranging from 75 to 95 percent of potable water. However, due to the cost of implementing recycled water systems, especially due to the capital costs cost of recycled water delivered cannot be matched with the revenue received. It must be recognized that recycled water is sometimes only financialiy feasible when The IRNA Team has successfully acquired more than $182M of local, state, and federal funding for recycled water systems for our Southern California clients. } J 314 'tP ..:4 ✓ , .L`'9' 3 pg.y, J 1'$45M yy$45M ;1S 11 $95M A� V NW M 4 y Mei .ap✓ M arm �. i+3 *a�vas`' wore 'Ile N OXVY :x compared to the cost of additional future water supplies or to increase water system reliability, rather than existing water supplies. Our team will develop a pricing and funding plan for recycled water that meets the following goals: Revenue Sufficiency — The tariffs set for recycled water and other sources of funding need to generate sufficient revenue to meet the City's revenue requirements. Since recycled water offsets potable water supply requirements, there may be some contribution from the potable water system. Fairness and Equity — The rates and fees need to be just and reflect the allocated cost of service among customers; however, they also need to be reflected at appropriate rates to convince users to use recycled water. Often recycled water projects are only cost - beneficial with some level of outside funding. We will help the City develop appropriate outside sources of funding to complete its recycled water system, recognizing that some sources of funding may require the City to adopt a Mandatory Use Ordinance, We will also develop the Master Plan to meet State Revolving Fund (SRF) funding requirements to ease future funding for the City. Potential sources of funding Include: Local Funding Options: • Metropolitan Water District — Local Resource Project (Recycled Water Sales) and • Metropolitan Water District - Recycled Water Customer Retrofit, State Funding Options: • State Water Resources Control Board — Proposition 11 (Planning only), • State Water Resources Control Hoard — Proposition 50 Firen Team, Understanding of Need and Approach, and Scope of Work Page 7